Fresh Bank Loan Rates Dip to 8.51% in September: RBI
Fresh bank loan rates drop to 8.51% and deposit rates ease in September, according to the latest RBI data on scheduled commercial banks.
Borrowers looking for new loans may find some relief as the bank lending rates decline. According to the latest data released by the Reserve Bank of India (RBI), the weighted average lending rate (WALR) on fresh rupee loans from scheduled commercial banks (SCBs) fell to 8.51 per cent in September 2026, down from 8.61 per cent recorded in August.
A Shift in Lending Trends
The RBI's report, titled "Lending and Deposit Rates of Scheduled Commercial Banks – October 2026," highlights a 10 basis point drop in the cost of new loans. However, this downward trend did not extend to those who already have loans. The WALR on outstanding rupee loans remained stagnant at 8.96 per cent throughout September, showing no change from the previous month.
Further indicating a softening in rates, the central bank noted a decline in the one-year median Marginal Cost of Funds based Lending Rate (MCLR). This key benchmark dropped to 8.55 per cent in October 2026, compared to 8.61 per cent in September 2026.
Sectoral Variations
While the overall average showed a decline, the RBI clarified that these changes were not uniform across the board. The movement of WALR for both fresh and outstanding rupee loans exhibited a mixed pattern depending on the specific sector.
Deposit Rates Also See a Decline
It wasn't just borrowers who felt a shift; savers also saw a dip in returns. The weighted average domestic term deposit rate (WADTDR) on fresh rupee term deposits decreased by six basis points, sliding to 5.61 per cent in September from 5.67 per cent in August.
Existing deposits also saw a slight decrease, though the drop was minimal. The WADTDR on outstanding rupee term deposits edged down by one basis point, moving from 6.56 per cent in August to 6.55 per cent in September 2026.
Data Scope and Sources
The RBI specified that the data for these lending and deposit rates were collected during October 2026 from scheduled commercial banks. It is important to note that this dataset excludes small finance banks and regional rural banks.
In summary, the September figures reflect a general easing of rates for fresh loans and deposits, while the cost of existing loans remained steady.